Business Loan

Business Loan Overview

Business Loan Overview

Business essay writer write my essay for me Loan that is not secured by property such as land, commercial and residential property called an unsecured loan. As an unsecured loan has no link with the personal assets, so we suggest that an unsecured business loan is the fruitful one for any business person or companies. The lender takes more risk while offering this type of loan.

Business owners do not like to grade my paper sigmaessays com easy essay shark essay buy an essay research paper definition do my essay tie their financial problem with his or their personal property or other securities. They believe that their business should be self-funding. So, most of them opt for unsecured business loan not backed by collateral. The loan amount is decided on the size of the business as well as banking credibility of the customer. The lenders ask for statements of the borrower’s bank account and other details as the lender take risk offering business loan.

At AbmLoans we provide you an option to release your nice home from your business loan. A question arises. Will your business qualify? As it is not secured by collateral, it is approved on your credit rating and previous financial history. boppy lounger slipcover pattern If your business suffers a bad credit or has a poor credit history here our experts will guide you to move on every step.

What type of business loan is suitable for small business owners? Large companies have assets, so they can opt for secured business loan while small companies or business runners should opt for unsecured one. Bad credit does not become a hurdle. Business cash advance is an alternative to the small business owners as its repayment is flexible.

FEATURES AND BENEFITS

  • Loan without any primary or collateral security requirements
  • Loan – Rs. 5 lakhs to 2 Crores
  • Loan Tenure – 12 to 36 months
  • Wide range of product to choose
  • Doorstep service at your comfort
Unsecured Business Loan is offered to:
Proprietors, Partners, Private limited companies, closely held limited companies, trusts and societies are all eligible for Business Loan;
 
Manufacturers: Includes all major sectors including engineering, automobiles, chemicals, pharmaceuticals, dairy, packaging, food, agricultural products, fertilizers jewellery etc.
 
Service providers:Includes hospitality, logistics, clearing and forwarding, education, doctors, engineers, chartered accountants, consultants, private and government contractors, healthcare.

Traders: All types of retailers, wholesalers, stockists, super-stockists and distributors

ELIGIBILITY CRITERIA
  • At least five years of operations for the business
  • Minimum turnover of Rs. 40 lacs in the manufacturing and trading industries, and Rs.15 lacs in the service industry.
  • Cash profit for the previous two years.
  • Positive business net worth.
  • Demonstrated growth in turnover

Get your loan quickly here. Forget about the formalities you have to deal with the banking professionals of any institutions and funds. We have associate partners and offer loans to our clientele who want to grow up in their business. Our loan consultants will check out your difficulties to get the commercial business loan from proofread my research paper essaywritingservicehelp co uk proofread my paper edit my paper the most fast-growing lenders in the industry. Our associate partners are ICICI Bank, HDFC, Axis, Kotak Mahindra and SCB. You can opt for any institution that you choose.

Documents

The borrower and/or the guarantors have to provide the following documents to the banks or lending institutions while submitting Business Loan Application. Certain documents may be demanded by the bank or lending institutions in post sanction phase or a periodical basis.

  1. Address Proof: Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence or Office Premises.
  2. Identity Proof: Valid Passport, PAN Card, Voter’s Card, any other photo identification issued by Government Agencies.
  3. Business Proof: VAT/CST Registration No. Or SSI Permanent Registration Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease Agreement along with the latest rent paid receipt.
  4. Business Profile on Company’s Letterhead.
  5. Partnership deeds in case of partnership firms.
  6. Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds, Form 32 in for Addition or Deletion of Directors in case of companies.
  7. Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered Accountant wherever applicable).
  8. Last one years’ Bank statement of the Firm.
  9. If existing loan, then sanctioning letter and repayment schedule of the same.
  10. Firm/Company’s PAN Cards.
  11. Individual Income Tax Returns of the Individual/Partners/Directors for the last three years.
  12. Last one years’ Bank statement of Individuals, Partners, and Directors.
  13. SEBI formalities in the case of listed companies.
  14. Shareholding pattern of Directors duly certified by a Chartered Accountant.
  15. List of the existing directors of the company from the Registrar of Companies.

NOTE :- The above criteria are generally applicable for all the banks, however some of the above criteria may vary from bank to bank(lender).

Process

Step 1 – Choose the lenders

Step 2 – Determine your Loan Eligibility

Step 3 – Get ready all your required documents

Step 4 – Apply for Loan by filling the application form with all requisite documents

Step 5 – Verification -The lender will verify the information and documentation provided by you along with checking your credit history. The lender can also ask for additional documents

Step 6 – After verification and credit check lender calculate your eligibility and get the loan Sanction

Step 7 – Once loan get sanctioned lender issue a loan agreement with all terms and conditions

Step 8 – Applicant sign the loan agreement and give post-dated cheque or ecs for repayment

Step 9 –Disbursal of loan

Interest Rates

Banks/Rates Business Loan Interest Rates
Self Employed Professional Self Employed Processing Fees
Negotiable
ICICI Bank 14% to 16% 18% to 20% 2%
HDFC Bank 15% to 17% 17% to 19% 2%
Kotak Bank 16% to 18% 17% to 20% 2%
Tata 16% to 17% 18% to 20% 2%
Money Line 16% to 17% 18% to 21% 2%
Fullerton India 16% to 18% 18% to 24% 2%
Bajaj Capital 15% to 17% 19% to 21% 2%
Citi Bank 15% to 17% 18% to 20% 2%
Standard Chartered Bank 16% to 17% 18% to 21% 2%

FAQs

What is a business loan?

The bank offers loan for the business owners who want to set up a new business or manage the finance of an existing business. The banks provide both secured and unsecured business loans. Secured loan is backed by collateral and unsecured one does not need any collateral.

Who can apply for a business loan?

Business loan is offered to both small and big business. Usually, the following can avail this type of loan:
• Self Employed Individuals/Professionals
• Sole Proprietorship Firms
• Partnership Firms
• Private Limited Companies

Is there any age factor (borrower & business) for applying a business loan?

The minimum age required for application is 24 years and the borrower must not exceed 65 years. The business for which loan is applied must have minimum 3 years current business experience and total business experience should be minimum 5 years.

Does the bank ask for annual income of the business or the working professional?

If  the applicant is a company then the business must have annual income of RS 1,50,000. The working professional should have an annual income of Rs 1 lakh. Then they can apply for this loan.

Which documents do I need to submit at the time of application?

Generally the bank asks for documents like identity proof, address proof, last 6 months bank statement, latest ITR along with Balance Sheet, P& L, and audit report certified by a CA.

What are the repayment tenure options?

The tenure of a business loan is from 1 year to maximum 5 years.

How much days would it take for final disbursement of the loan?

Usually it would take around 7 working days for processing of the loan after submission of all documents.

What are the options for repayment of loan?

You can repay your loan through Electronic Clearing System or post dated cheque.

Does the bank accept part pre-payment? Could I prepay my loan?

The loan can be prepaid after payment of 6 times EMIs . The bank may apply foreclosure charges as per the terms and conditions.

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